Redeemable Deeds: How Texas and Georgia Tax Sales Work

Updated Oct 8, 2026

Some states do not fit neatly into "lien" or "deed." In redeemable-deed states (sometimes called hybrid states), you buy the property at the tax sale and receive a deed, but the former owner keeps the right to buy it back for a period by paying you what you paid plus a statutory premium. Texas and Georgia are the best-known examples.

These sales can offer strong returns and a more direct path to ownership than lien foreclosure, but they come with more complexity.

How redeemable deeds differ

• Versus a tax lien: you receive a deed, not just a claim on a debt. If the owner does not redeem, you do not have to start a separate foreclosure of a lien.
• Versus a pure tax deed: your ownership is conditional during the redemption period, and the title may need extra work before it is marketable.

Texas

• The sale: after a court judgment for delinquent taxes, the property is sold at a public sale (typically by the sheriff or constable). The buyer receives a deed.
• Redemption period: generally two years for residence homesteads and land designated for agricultural use, and 180 days for other property.
• Redemption premium: the owner pays the purchase price plus certain costs and a premium set by statute: generally 25% in the first year and up to 50% in the second year for property with a two-year period.
• Outcomes:
  • redeemed: you receive your purchase price, allowed costs and the premium;
  • not redeemed: your deed is no longer subject to redemption.
• Watch: you may hold a deed that can still be undone. Know the property type (it sets the period), the value and the condition.

Georgia

• The sale: the property is sold at a public tax sale, and the buyer receives a tax deed.
• Redemption: the owner and other interested parties can redeem by paying the purchase price, certain costs and a premium (20% for the first year, plus 10% for each additional year or part of a year).
• After 12 months: the buyer can end the right of redemption by serving a statutory "notice of foreclosure of right to redeem" (often called barment). Many buyers then use a quiet-title action to make the title marketable.
• Watch: budget for the notice process and, if needed, quiet-title costs.

What advanced investors should weigh

• Returns: statutory premiums can be high relative to the holding period if a property is redeemed, but there is no premium if it is not.
• Property focus: these states suit investors who actually want the property, since a deed is the starting point.
• Capital: you pay the full winning bid, often well above the tax amount, and it may be tied up for the whole redemption period.
• Possession and upkeep: rules on possession, rents and insurance during the redemption period vary. Get local advice before taking any action on the property.
• Research: value, condition, occupancy, surviving liens and the cost of perfecting title all matter more here than in lien states.
• Counsel: a local attorney who handles tax sales is strongly recommended.

Comparison

Conclusion

Redeemable-deed states reward investors who understand the law, research the property thoroughly and are prepared for title work. Read the statute and the county's sale terms before bidding, and get local legal advice for any property you may keep.

Compare state systems in Tax liens vs. tax deeds and Judicial vs. administrative foreclosure.

This article is general information, not financial or legal advice. Tax-sale rules change; always confirm with the county.